|
Welcome
to FinanceArticleDirectory.info!
Articles » Finance-and-investment>> View Article
|
 | |  |
| 10 Rules For Day Traders
| By:
Armando Pena | |
|
Day traders must strive to keep their emotions in check during their time in the market. This is easier said then done. Anyone that has ever been in either a losing or winning trade knows it's virtually impossible not to react emotionally when day trading. We have to admit that the emotional rides through the trading day are part of the allure to trade. What we truly should control is our commitment to day trading discipline. Here are 10 rules that can play a positive role in your approach:
1. Have a plan, Trade the plan - It is absolutely critical to have a trading plan and maintain discipline to stick to that plan. Your plan should consist of why and when you enter/exit trades, the size of your trades, etc. Stick to what works and repeat it like a machine.
2. Treat your trading as a business - Don't trade just to make money. Conduct your trading decisions as if you were running a business. Only enter positions when your day trading system tells you to. Don't just trade for the action. Review your trading everyday - Evaluate why you took trades. Did you follow your rules? Learn from your mistakes.
3. Prepare for the trading day - Setup key support and resistance areas on your charts. Make sure you are aware of pending news that may affect your trading. Don't trade if you are tired, angry, or distracted.
4. Look at risk before profit when entering positions - It is often said that successful day traders first look at loss potential before profit potential of their trades.
5. Trade what you see, not what you think - You should only trade what your charts are telling you. Avoid directional bias. Don't continue to trade against a trend because you think "it has to reverse".
6. Follow strict trade management as soon as you enter a trade - Take small profits as your trade runs positive. Stay focused when you are in a trade and be prepared to move your stop losses as the trades require.
7. ALWAYS use stops - Day trading without stops, or moving stops is the number one ruin of unsuccessful traders. Set them as soon as you enter a trade. If you get stopped out of three consecutive trades you are out of sync with the market. Walk away for 15 minutes and come back for a fresh start.
8. Take losses - You will never be a consistent, profitable trader until you can accept losing trades. No one wins every single trade. Cut your losing trades according to plan.
9. Take profits - Frustration can really elevate when your winning trades turn into losers. The key is small consistent gains that WILL add up over time. You will fail in the long run if you always swing for the fences.
10. Don't over trade - One effective way to avoid over trading is to stick to your discipline of only entering highly probable trades. Set a daily goal and quit when you reach it.
Have fun! - Profitable trading will reinforce your discipline and increase your confidence. Enjoy the ride.
------------------------------
Armando Pena is a full time day trader and invites you to the exciting and highly rewarding career of online trading. You can find effective trading systems, tools, and coaching resources at http://www.daytrade4profits.com to begin a successful day trading career. |
|
|
| Resources |
|
| Article Source : http://financearticledirectory.info |
Total Views :
208 Word
Count Appx. :
557
|
| |
 |  |  |
 |
|
| Free PDF Rebranding Software |
Turn your Articles and books in to Rebrandable PDF files to distribute and build your downline |
Get your free copy here
|
|
